Information on Janicek Power Co., is shown below. Assume the companys tax rate is 40 percent. Debt:
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Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 40 percent. |
Debt: | 9,900 9.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 97 percent of par; the bonds make semiannual payments. |
Common stock: | 224,000 shares outstanding, selling for $84.40 per share; beta is 1.29. |
Preferred stock: | 13,400 shares of 5.95 percent preferred stock outstanding, currently selling for $96.60 per share. |
Market: | 7.2 percent market risk premium and 5 percent risk-free rate. |
Required: |
Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date: